Sushil Finance has recommended hold rating on IndusInd Bank with a target price of Rs 750, in its research report dated October 21, 2014.
"Indusind Bank Ltd. (IIB) has reported good set of numbers for the quarter ended September'14 with superior growth & stable asset quality. We attended the conference call of the company and following are the key highlights of the results."
"Healthy advances growth (~22% YoY) coupled with stable NIMs (3.63% v/s 3.66% Q1) resulted in strong NII growth which grew by ~19% YoY & 4% QoQ to Rs.8.3 bn. Advances growth was mainly on back of robust growth in corporate loan book which grew by ~37% YoY while retail portfolio grew by modest 7% YoY. Sluggish growth in retail was on account of flattish growth in vehicle segment while non-vehicle segment witnessed strong growth in the quarter (Corp/Retail 57:43). Deposits grew by ~24% YoY on back of better CASA growth which stood at ~33% YoY. CASA ratio improved by 60 bps in Q2 to 33.9% (Q1-33.3%). Better growth in Forex, Distribution/Loan processing fees & Investment Banking led to strong growth in corefee income which grew by 31% YoY & 5% QoQ. Management expects core-fee income to remain stable going forward. Healthy NII growth, stable NIM's, consistent core-fee income growth coupled with cost optimization (C/I – 47.9%) has led to healthy growth in PPP which grew by ~23% YoY.Asset Quality remained stable with GNPA & NNPA at 1.08% & 0.33% resp. Slippages in Q2 were low at 0.8% (annualized) with remarkable improvement seen in corporate & CV portfolio. Total Credit Cost for Q2 & H1 stood at 10 bps & 25 bps resp. while PCR stood at 70%. Restructured book increased slightly to 0.5% due to 4-5 new accounts getting restructured in this quarter. CRAR under Basel III stood at ~13.0% with ROE & ROA at ~18% & 1.9% respectively.Management Guidance: 1) NIMs likely to remain stable with upward bias due to likely asset rebalancing & lower cost of deposits. 2) CV cycle showing signs of bottoming out with revival expected over next few months (~20% of book). Have witnessed some uptick in Auto segment incl. CV in Sept'14 after almost 12-15 months. 3) Branch expansion to continue - added 85 branches in H1 to 687 branches & expects the total branches to reach 800 by FY15 end. 4) Credit cost for FY15E to be ~50-55 bps."
"Strong advances growth, healthy NIMs coupled with stable asset quality has led to superior performance in the current quarter. Strong execution track record coupled with well-defined strategy over FY14-17E (advances growth CAGR ~25-30%) to auger well for the bank's growth over the next 3-4 years. Sustainable & profitable above-industry growth with stable asset quality & improving return ratios to result in likely re-rating of the stock going forward. Moreover, we have been conservative on asset quality assumptions, thus providing upside risk to our estimates. Hence, considering the sound fundamentals & strong growth prospects, we remain positive on the stock & recommend 'Hold' with a revised price target of Rs.750 based on our FY17E estimate," says Sushil Finance research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Hold IndusInd Bank; target of Rs 750: Sushil Finance
Dengan url
http://berhentialkohol.blogspot.com/2014/11/hold-indusind-bank-target-of-rs-750.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Hold IndusInd Bank; target of Rs 750: Sushil Finance
namun jangan lupa untuk meletakkan link
Hold IndusInd Bank; target of Rs 750: Sushil Finance
sebagai sumbernya
0 komentar:
Posting Komentar